Tag Archives: Mega Trends
The CIO Challenged
If you ask a CIO today about their challenges, several things would clearly make the list. CIOs that I know personally are feeling a bit of Future Shock. They say that things are changing a lot faster these days than they did in the past. One CIO said to me in exasperation, “things are changing every 18 months”. Given this, I recently sat down with CIOs from several different industries to get their perspectives on how the CIO role is changing and the challenges they feel in their role as CIO. This post will focus upon the latter.
The healthcare CIO participating said that CIOs need to manage four large mega trends simultaneously—mobile, cloud, social, and big data. At the same time in healthcare, they have the added complexity of Meaning Use, ICT 10, and HL7. For these reasons, this CIO worries about keeping the IT lights on while at the same time helping the business to expand. This CIO sees healthcare is clearly entering an era of ubiquitous computing with the iPad becoming the rounding and vitals instrument of choice. This links mobility, integration, and compliance around a standard like HL7. HL7 provides this CIO with a framework for exchanging, integrating, sharing, and retrieving of electronic health information. Like other CIOs that we talked to, our healthcare CIO says he needs to understand his enterprises business better in order to be a better partner.
Our next CIO is from the insurance. He sees CIOs in general being challenged to move from being a builder of stuff to an orchestrator of business services. This CIO sees cloud and loosely oriented partnerships bringing vendor management to the forefront. At the same time, he feels challenged to provide application integration in a service oriented manner. He says that IT organizations need today to orchestrate across IT regardless of device. As well, he believes that IT organizations need to stitch together an IT that is fungible and support service oriented architecture. At the same time, he says that his business users “believe that data is strategic but they need it provided to them in a way that creates predictive capabilities and drives top line revenue”. We and our business customers know that we need to fix our mutual data problems in order to use data better. This CIO said believes that he needs to fix his enterprise’s data hygiene first in order to improve business outcomes.
The Manufacturing CIO participating said that CIOs have an opportunity to create informative analytics and help the business find value. However, this CIO worries that CEOs and CFOs are about to start complaining to their IT organizations that the information garnered from Big Data and Business Intelligence does not really make them more money. He claims, to make more money, IT organizations need to connect the dots between their transactional systems, BI systems, and the planning systems. More specifically, they need to convert insight into action. To do this, the business needs to be enabled to be more proactive and to cut the time it takes to execute. This means that IT needs to enable the enterprise to generate value different than its competitors. This CIO worries, therefore, about IT’s ability to drive flexibility and agility. We need to respond to the rate of change and be able to prototype faster at the same time as we cut the cost of failure. This CIO claims that CIOs needs to more actively manage the information lifecycle even though the business may own the data. Lastly, this CIO says that IT organizations need to be more forward looking. We need to be looking at things cross discipline. We need to be looking for new business insights. We have piles and piles of data from which to draw interesting insights from. How do you connect and create new business insights?
Getting the CFOs to understand that technology is not a cost center was really important to our 4th CIO. We need to get everyone to understand that IT isn’t separate from the business. At the same time, we need to get business leaders to understand technology better. There is a real West Coast vs. East Coast split regarding business technology literacy. We need business leaders to start asking for digital services that support their product and service offerings. And this is all about data. “Think about it. What we do in IT is all about the intake of data, storing data, processing data, and analyzing data. And we need to provide the intelligence to make better decisions. Competing with analytics is what we need to enable. Like an athlete that needs muscles—data needs cleaning, security, mastering, and governance to enable the business to compete with analytics”.
Our broadcast CIO is focused on the explosion of Big Data. “I need to get my management team exposed to Big Data Analysis. I need as well to get the resources to do this well”. We need for example to get the business answers to its questions around customer behavior. From an integration perspective, this CIO said that she needs to get service based technology deployed. At the same time, she said I need to be able to have business apps for my business and consumer users to subscribe. This CIO said that speed to clients from integrated systems is a big issue. We need today to connect everything together.
CIOs as whole feel are feeling challenged
CIOs regardless of industry feel challenged. They feel challenged by changes coming at them in general and in industry specific mandates and standards. They clearly need to move faster and to move from organizations that are about getting the internals of IT running well to organizations that can absorb new technology models, scale up and down in “Internet time”, and flex seamlessly to support business model innovation. For more information, see the related links below: